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Insurance Firm Porto Seguro, Brighterion Team On Credit Risk Management

Insurance company Porto Seguro is partnering with artificial intelligence (AI) technology firm Brighterion to manage credit risk and enhance customers’ experiences, the companies said in a press release Wednesday (May 26).

Brighterion, a Mastercard company, has AI solutions that help pinpoint credit risk earlier in the buying lifecycle. Porto Seguro is the first company based in Brazil that is using the AI as a credit risk solution, the release stated.

“We were able to use Porto Seguro’s analytical expertise and combine it with our AI technology to build high-performance models,” said Head of Brighterion and Senior Vice President at Mastercard Sudhir Jha in the release. “These AI models have enabled Porto Seguro to manage credit risk more effectively while improving the customer experience.”

Brighterion uses AI and machine learning (ML) to extend intelligence-based processes to determine the level of credit risk and transaction fraud in key customer applications, according to the release. Brighterion uses AI Express, which is a collaborative program, and a mix of proprietary tools that include its Smart Agents technology.

“This AI model could be run on transactions from any card network,” said Porto Seguro Executive Director Ricardo Kaoru Inada in the release. “Almost 50 percent of potential defaults were identified 70 days in advance in the pilot phase of the project, which helps us increase credit limits for our customers through a more assertive analysis.”

Founded in 1945 and with 14,000 employees, Porto Seguro is one of the biggest insurance companies in Brazil, operating through its subsidiaries in Brazil and Uruguay. The company offers car, residential, health, life and business insurance, with its consortium offering auto and homeowners, pension, savings bonds and other financial services.

U.S. consumer debt grew at its highest rate in over 10 years, reaching close to $15 trillion. A PYMNTS study in collaboration with Brighterion — AI In Focus: The Navigating Bank Credit Risk Playbook — showed that AI is quickly being used in the banking industry to ascertain credit risk. AI use has expanded threefold, with 79 percent of financial institutions with $100 billion-plus in assets making use of the technology.

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